Lowe's

Company information

• Date founded: 1946
• Industry: Home improvement retail
• Corporate headquarters: Mooresville, North Carolina
• Type: Public

Overview

Lowe’s is one of the largest hardware and home improvement chains in the United States. The company began as a small hardware store, then called North Wilkesboro Hardware, in Wilkesboro, North Carolina. As the store became more successful, several other locations were opened across the United States, still bearing the name North Wilkesboro Hardware. The company was known for cutting deals directly with suppliers, then selling goods to consumers and contractors at near-wholesale prices.

In 1961, the company changed its name to Lowe’s Companies, Inc. The company continued to undergo major changes throughout the following decades. Lowe’s first changed its stores to increase its appeal to individual homeowners, altering its inventories to provide more equipment and tools for home improvement. Later, the company adopted large, open floor plans and warehouse-style layouts. These changes allowed Lowe’s stores to stock large amounts of inventory while still allowing customers freedom of movement within the store. The company then added numerous other sections to its warehouse stores, including lawn and garden supplies and major appliances.

Lowe’s stores are known for competing with Home Depot, a similar warehouse-style hardware chain. Lowe’s also maintains the Lowe’s Foundation, a charitable organization that works to improve the lives of the people of the Greater Charlotte, North Carolina region.

History

The company that would become Lowe’s was founded by entrepreneur Lucius Lowe in Wilkesboro, North Carolina, in 1921. At the time, the business was called North Wilkesboro Hardware. Lowe continued to run the business until he died in 1940. Following his death, control of the business fell to his son, James Lowe. James Lowe’s brother-in-law, Carl Buchan, later claimed a fifty percent stake in the business and joined Lowe as a partner. Buchan spearheaded initiatives to restructure North Wilkesboro Hardware, changing the business from a small hardware store into a wholesale storefront that primarily dealt in building supplies.

Buchan and Lowe’s restructuring was a success, and North Wilkesboro Hardware quickly began generating large amounts of capital. The pair began to branch into other industries, such as farming and automobile sales, but most of their capital continued to come from their hardware store. During the mid-twentieth century, the pair opened several more hardware stores in the region. These hardware stores all used the name Lowe’s North Wilkesboro Hardware.

Following the end of World War II (1939–1945), a housing boom in the United States fueled a period of rapid growth in the construction industry as suburbanization took off around the country. Lowe’s North Wilkesboro Hardware cut deals directly with manufacturers, allowing it to act as a wholesaler instead of purchasing its materials from other wholesalers. This allowed the store to sell construction materials for lower prices than many other hardware stores. This earned the hardware supplier a positive reputation among both consumers and construction firms. Capitalizing on this influx of profits during this period, Lowe’s North Wilkesboro Hardware continued to open new locations.

Buchan bought out Lowe in 1954 and became the sole owner of the company. He remained in control until his death in 1961. That same year, the company went public, generating a significant amount of investment funds. It then changed its name to Lowe’s Companies, Inc. By 1970, more than fifty Lowe’s stores were in operation throughout the United States.

In 1978, Robert Strickland became chairman of Lowe’s board of directors. The executive sought to change the company’s business practices, hoping to attract more consumers. During the mid-1970s and early 1980s, the construction industry experienced an economic downturn. The “do-it-yourself” movement caused many homeowners to perform home maintenance and repairs on their own instead of turning to contractors and construction companies. For this reason, many hardware stores began to change their inventory to better suit homeowners instead of larger construction firms. Lowe’s followed suit, increasing its popularity with the average consumer and building a reputation as an affordable hardware store. By 1979, more than two hundred Lowe’s stores were in operation across the United States.

During the late 1980s, Lowe’s significantly changed the style of its stores. Instead of a traditional hardware store layout, it adopted a much larger warehouse-style layout. These stores allowed Lowe’s to feature a much wider array of consumer goods, as well as larger quantities of lumber, construction materials, garden plants, and other home improvement goods, many of which are popular with customers interested in do-it-yourself (DIY) projects. These warehouse-style stores also featured an open floor plan, giving consumers more space to browse through the store’s increased inventory. The changes proved successful, and Lowe’s was able to rapidly expand throughout the United States. By the early twenty-first century, Lowe’s expansion made the hardware chain the second-largest home improvement retailer in the United States.

Lowe's remained operational during the COVID-19 pandemic and actually experienced increased demand as consumers focused on home improvement projects while at home. However, because home improvement projects were very popular during stay-at-home orders, supply chain disruptions impacted inventory levels and product availability. As demand for the company’s services and products expanded, Lowes began focusing on gaining customers who were professional contractors, enhancing its Pro Loyalty programs. However, by 2023, the company reversed this focus and focused on smaller projects and services for contractors.

In 2025, Lowe's unveiled its 2025 Total Home Strategy, focusing on offerings for professional customers, e-commerce, home service expansion, unifying its loyalty programs, and improving physical store layouts to optimize space productivity.

Impact

Lowe’s Companies, Inc., is one of the largest hardware store chains in the United States. In the mid-2020s, the company maintained more than 1,700 stores nationwide, generating more than $86 billion in revenue. These stores serve roughly sixteen million customers each week and employ more than 300,000 people.

Lowe’s stores typically continue the practices carried out by the first hardware stores in the chain, serving both individual consumers by providing supplies for small jobs and conducting larger sales with contracting and construction companies. In addition, many larger Lowe’s stores carry large quantities of plants, landscaping supplies, holiday decorations, and appliances. Lowe’s has secured its position as the second-largest hardware store and home improvement retailer in the United States. In 2020, it was surpassed in revenue only by its largest competitor, Home Depot.

Lowe’s also funds and maintains the Lowe’s Foundation, previously known as the Lowe’s Charitable & Educational Foundation. The foundation funds educational and training projects in the Greater Charlotte, North Carolina region. It also worked to provide affordable housing to people in need and to provide aid to small businesses hurt by the COVID-19 pandemic.

In 2023, the Lowe’s Foundation announced that from 2023 to 2027, they would invest $50 million to prepare skilled laborers for the workforce. The money was to be given to community colleges and technical schools in the form of two-year grants to create the next generation of skilled trades workers. In 2025, Lowe's pledged $2 million to support relief and recovery efforts for the unprecedented wildfires in Southern California. The company also launched a $10 million community grant program to fund one hundred renovation projects and complete an additional 1,700 improvement projects across various communities.

Bibliography

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Fernando, Jason. “Home Depot vs. Lowe’s What’s the Difference?” Investopedia, 20 Feb. 2023, www.investopedia.com/articles/personal-finance/070715/home-depot-vs-lowes-home-improvement-battle.asp. Accessed 25 Jan. 2025.

“Lowe’s Foundation.” Lowe’s, 2021, corporate.lowes.com/our-responsibilities/lowes-foundation. Accessed 25 Jan. 2025.

“The Lowe's Foundation Announces $50 Million Gable Grants Program to Help Meet Growing Demand for Skilled Tradespeople.” Lowe's Corporate, 2 Mar. 2023, corporate.lowes.com/newsroom/press-releases/lowes-foundation-announces-50-million-gable-grants-program-help-meet-growing-demand-skilled-tradespeople-03-02-23. Accessed 25 Jan. 2025.

“Lowe’s Reports Fourth Quarter 2020 Sales and Earnings Results.” Lowe’s, 24 Feb. 2021, corporate.lowes.com/newsroom/press-releases/lowes-reports-fourth-quarter-2020-sales-and-earnings-results-02-24-21. Accessed 25 Jan. 2025.

"Our Business." Lowe's Corporate, corporate.lowes.com/who-we-are/our-business. Accessed 25 Jan. 2025.

“Rising to the Challenge 2020.” Lowe’s, 2021, corporate.lowes.com/sites/lowes-corp/files/annual-report/lowes-2020ar.pdf. Accessed 25 Jan. 2025.

Smith, Craig. “Lowe’s Statistics and Facts for 2024.” DMR, 13 Dec. 2024, expandedramblings.com/index.php/lowes-statistics-and-facts. Accessed 25 Jan. 2025.

“20 Things You Did Not Know About Lowe’s.” Home Stratosphere, 4 July 2018, www.homestratosphere.com/things-about-lowes. Accessed 25 Jan. 2025.